Intertrust N.V. announces it has signed an agreement to acquire Elian Group from Elian’s management and funds managed by Electra Partners LLP.
Elian is a high growth, regional Trust & Corporate Services leader. The Company has the number one leadership position in Jersey and a strong presence in the UK and 13 other jurisdictions, 10 of which overlap with Intertrust. Elian is particularly strong in services for Capital Markets, having acquired SFM in 2015, and for Private Equity & Real Estate Fund Administration, serving a similar blue chip client base comprising alternative investment funds, financial institutions, corporate and private clients.
Here’s Intertrust’s three strategic pillars for the acquisition:
• Significantly increase Intertrust’s scale in the UK (London), Ireland and Spain, and further consolidate Intertrust’s positions in Cayman, Guernsey, Luxembourg and the Netherlands;
• Add high-value complementary services for Capital Markets and Private Equity & Real Estate Fund Administration; and
• Expand Intertrust’s footprint with the number one leadership position in the attractive jurisdiction of Jersey.
The acquisition will be funded through €100 million in cash, €315 million in debt and €155 million in equity. £26 million (€33 million) of the consideration will be re-invested by management and key employees. Closing of the transaction is expected by Q3 / Q4 2016 and is conditional upon shareholder approval in an Extraordinary General Meeting approval and customary regulatory approvals.
Commenting on the transaction, David de Buck, CEO of Intertrust said ‘The acquisition of Elian presents a great opportunity for Intertrust to significantly expand its Capital Markets and Private Equity & Real Estate Fund Administration services. Consolidation in our industry continues, and the ability of global trust and corporate services providers to acquire high quality companies will determine their success going forward. Against this backdrop, I am especially pleased to announce the addition of Elian to the Intertrust family. Our similar cultures and the emphasis both our companies place on integrity and high-value service delivery will form a strong basis for successful integration. The inclusion of Elian’s capabilities and geographic presence will consolidate Intertrust’s position in Capital Markets and Private Equity & Real Estate Fund Administration, add scale to our operations in several important jurisdictions, and bring us the leadership position in Jersey. With Elian on board, we will be able to offer more to our clients and investors worldwide. I look forward to working with Elian’s excellent team.’
Commenting on the transaction, Paul Willing, CEO of Elian said ‘Our combined service offering and network of offices globally will broaden and strengthen our capabilities to support our clients in all key international business locations. We know Intertrust shares our belief that our people are our most valuable asset. The opportunities for career development, as well as the leadership and international mobility programs will make our tie-up with Intertrust especially interesting for our employees. We are truly creating the global leader in our industry with this transaction – very exciting.’
Source: Intertrust press release